A ground-breaking event took place on Friday to mark the start of the £100m first phase.
Phase one comprises 226 council flats across two new tower blocks. The whole development will eventually have 781 units for Westminster City Council.
The new homes have in-home heat detectors and sprinkler systems for fire safety. Most will also have private balconies, a shared private terrace and/or podium gardens.
More than 110 households have been temporarily relocated and six empty tower blocks have been demolished to prepare for the construction. During this initial phase, the first taller buildings will be built, with views over the Thames and Battersea Power Station.
The majority of returning residents will have an opportunity to move into the first two new buildings, along with other Westminster residents, the council says.
Ebury Bridge will be a largely car-free development, with disabled car parking only.
The new homes are designed to use 90% less carbon than the existing estate and grey water will recycled and used for household functions.
Fabienne Viala, chair of Bouygues Construction UK, said: “The fact that the new homes will use 90% less carbon than the existing estate is such a great step forward. It’s our ambition to achieve this level of sustainability across all our projects and we are all the more excited to start work. For us, this project is a great opportunity to support the community of Ebury Bridge Estate and bring sustainable benefits to everyone who lives and works here.”